Investing in Gold Stocks: Turning Fiat into Fortune

investing in gold stocks

Investing in Gold Stocks: The Fiery Path to Wealth in a Fiat World

Aug 30, 2024

Many individuals sit back, wallowing in regret over the first stage of the Gold Bull Market they missed as if their failure to seize the moment is some irremediable tragedy. What’s more interesting is that these same people obsess over what they’ve lost instead of what they could still gain. Stop whining like a baby donkey, and let’s get down to business—it’s time to invest in gold stocks. But before we jump in, let’s take a step back.

Since gold peaked in 2011, a whole parade of sectors took off. Anyone with half a brain could’ve deployed a chunk of their funds in any of these markets and walked away with decent gains. Yet, the classic gold bug—trapped in a perpetual state of nostalgia—clung to gold, letting every other opportunity slip away unnoticed.

Regret is a fool’s companion. Life’s too short to linger in the past. There’s always another bull market on the horizon. Why limit yourself to just one market? Too many get stuck in the precious metals bubble because they’ve been spoon-fed doom and gloom from every so-called “hard money expert.” Never fall for that script. Panic is the enemy of reason—once you’re in that headspace, you’re nothing but a vessel for nonsense.

Gold bugs, listen up: You can have your cake and eat it, too, but it’ll require a shift in perspective. Embrace the trend and the game changes. Stick around, and we’ll lay it all out for you—clear, simple, and ready to profit.

Precious Metals & The Trend

Precious metals will trend higher one day, but why fixate only on that day? What about today and all the other opportunities you might sacrifice because you have restricted your vision? If you cling to a particular outlook, you have reduced your line of sight by a significant margin.  This is why Gold Bugs openly states that they will not support “Fiat” and will instead embrace Gold and Silver rather than the stock market, funded by worthless paper.  We respond, “Oh really,” well then, what are these bugs doing when they buy Gold? Are they not hoping that Gold soars in value, and what will it rise in value? Oh yes, worthless dollars?

You cannot see the whole picture if you cling to one perspective. How about looking at it from every angle? If you are a Gold Bug or Hard Money fan, here is how to have your cake and pie.

Gold Bugs cling to one perspective only.

Why not embrace the equities bull, use the worthless money to get more cheap money, and then use some of this paper to buy the Gold and Silver you crave? This perspective is lost to many because all they see is Gold and nothing else. Had they embraced this point of view, they would have embraced the equities bull and multiplied the worthless paper (money) they had.

Then, they could have used some of this worthless money to buy real money (Gold), and maybe then they would not be so obsessed with the Gold Market.  The Gold they obtained would technically be free as they used paper profits generated by embracing assets they typically would not; this extra paper was used to bankroll the purchase of new bullion. They would pull a page from the central banker’s books. Perception depends on the angle of observance; alter the angle, and you modify the perception.

Investing in Gold Stocks: Turning Fiat into Fortune

Gold vs SP 500

This chart illustrates how Gold performed compared to the SP500 over the past five years; in comparison, Gold has taken a beating and is now making a modest comeback. This took place in the face of the most extraordinary money-printing efforts from central bankers in the history of this planet. What happened to the hard money argument that Gold would rise as the money supply soared? Instead, the opposite occurred; the more money central bankers created, the more Gold fell.

M2 money supply has soared since 1980 and price of Gold has fallen

This chart clearly illustrates that since 1980, Gold has not fared as well as it should have.  Look at how the money stock has increased. The price of Gold should have continued to trend upwards, and it should be north of $2500. Instead, it cannot even trade to $1400.  There is a reason for this: central bankers have managed to recreate reality. By brainwashing the masses and creating new definitions for inflation, they have convinced the masses that Gold is an old relic not worth focusing on, but that is a story for another day.

This is why it is essential not to belong to any group and why it is more important to concentrate on the trend. Don’t fall in love with Gold; it is just another investment. It will trend up for some time, then pull back and correct firmly, and then trend up again. Nothing trends up forever, with stupidity being the only exception.

Focus on the trend

Once again, the point we are trying to make is that you should not live in regret; the 1st phase of the Gold Bull is over, but the next step will be even more vital. We have a high-end target of $5000 for Gold, and to be honest with you, we hope it does not trade to $5000, and we are wrong.

Inflation will be pretty significant if Gold hits $5000, so those fools hoping for Gold $25,000 or $50,000 have no idea how terrible things would be if Gold traded to those targets. If Gold ever trades to $50,000, the world as you know it will be over. Chaos will be the order of the day. We will face a situation that will be even worse than the Great Depression.  Luckily, most of these guys are full of hot air, and it is more likely that Central Bankers will embrace Gold before Gold trades to those targets.

Conclusion: Investing in Gold Stocks

AUY Yamana Gold Inc. daily Stock Chart
Forget the noise; focus on the trend. Experts are there to confuse, not enlighten. We have never claimed to be experts; at most, we will settle for the title of advanced market students. The market is a complex beast, and there is always something new you can learn. Those who refuse to accept this are usually punished severely.

What’s more, don’t forget, you can have your cake and pie. Use worthless paper to make more paper and then use some of this paper to buy  (Real Money) Gold and or Silver bullion. In such crazy times, it would be prudent for everyone to have some funds in Gold and Silver bullion. If you have no position in bullion, use strong pullbacks to open new positions. With this strategy, you are using worthless paper to make more worthless paper and purchase Gold with this extra worthless paper you would not have had in the 1st place; in essence, you are adding to your Gold stock for free.

In the end, the choice is yours. Will you remain shackled by past regrets and the paralyzing grip of fear? Or will you step boldly into the arena, armed with knowledge, strategy, and the will to succeed? The world belongs to those who dare to shape it.

Wealth is not merely inherited or stumbled upon; it is crafted through insight, action, and an unwavering resolve. So cast off the chains of hesitation. Embrace the golden path before you. The markets are in motion, and the next chapter of your financial journey awaits. Seize it with both hands and let the alchemy of opportunity transform potential into prosperity.

Ability is a poor man’s wealth. Wren

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